FirstBank to Sell Third Party Origination and Correspondent
Channels
NASHVILLE, Tenn.--(BUSINESS WIRE)--
FB Financial Corporation (NYSE: FBK), parent company of FirstBank,
announced today that it is restructuring its Mortgage segment through
the exit of its wholesale mortgage origination operations.
FirstBank has signed an agreement to sell its third party origination
channel to Renasant Bank. Upon closing of the transaction, Renasant Bank
will assume substantially all of the assets and personnel related to the
channel. The agreement is subject to customary closing conditions,
including the receipt of any required third party and regulatory
approvals. FB Financial expects the transaction to close in the second
quarter of 2019.
Additionally, FirstBank has entered into a non-binding indication of
interest to sell its correspondent channel to a separate unrelated third
party. Assuming completion of the transaction, the third party will
assume substantially all of the assets and personnel related to the
channel. The proposed transaction is subject to, among other things, the
potential buyer’s additional review of the assets to be purchased, as
well as the negotiation and execution of a definitive agreement with
respect to the transaction, which will include certain terms and
conditions, including customary representations and warranties. Subject
to signing of an agreement and final diligence, FB Financial expects the
transaction to close in the second quarter of 2019.
FB Financial’s President and CEO Chris Holmes stated, “We have reviewed
our mortgage operations and concluded that the exit of these wholesale
channels better aligns Mortgage with our strategic plan and long-term
vision for the Company. The exit also allows additional focus on our
Retail and Consumer Direct (online) origination channels.”
FB Financial expects to record a restructuring charge of up to $2.5
million to cover deal related expenses, severance and other items
related to its mortgage operations. Additionally, FB Financial expects
its total mortgage operations to record a small pre-tax contribution for
the first quarter of 2019, excluding the impact of the aforementioned
mortgage restructuring charges, compared to total mortgage operations
pre-tax loss of $1.8 million in the fourth quarter of 2018.
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE: FBK) is a bank holding company
headquartered in Nashville, Tennessee. FB Financial operates through its
wholly owned banking subsidiary, FirstBank, the third largest
Tennessee-headquartered community bank, with 56 full-service bank
branches across Tennessee, North Alabama and North Georgia, and mortgage
offices across the Southeast. FirstBank serves five of the largest
metropolitan markets in Tennessee and has approximately $5.1 billion in
total assets.
FORWARD-LOOKING STATEMENTS
Certain of the statements made in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. The words “expect,” “anticipate,” “intend,” “plan,”
“believe,” “seek,” and “estimate,” and similar expressions, are intended
to identify such forward-looking statements, but other statements not
based on historical information may also be considered forward-looking,
including statements about the company’s ability to successfully
complete the disposition of either of the third party origination or
correspondent channels.
All forward-looking statements are subject to risks, uncertainties, and
other factors that may cause the actual results, performance, or
achievements to differ materially from any results, performance, or
achievements expressed or implied by such forward-looking statements.
Such risks, uncertainties, and other factors include, among others, (1)
the risk that we may be unable to reach an agreement for the sale of the
correspondent channel on terms that we can accept, (2) the timing of the
conclusion of any negotiations with the potential buyer of the
correspondent channel, (3) our ability to consummate the sale of the
correspondent channel if we are able to reach a definitive agreement and
our ability to consummate the sale of the third party origination
channel, (4) our ability to compete either transaction in the time
expected, (5) any anticipated benefits to be derived from either
transaction, (6) the possibility that the amount of the restructuring
charges related to the proposed transactions may be greater than
anticipated, including as a result of unexpected or unknown factors,
events, or liabilities, (7) disruption from the proposed transactions
with customer, vendor, or employee relationships, and (8) the occurrence
of any event, change, or other circumstances that could give rise to the
termination of the agreement to sell the third party origination
channel, or, in the event we are able to reach a definitive agreement,
the agreement to sell the correspondent channel, Additional factors
which could affect the forward-looking statements can be found in FB
Financial’s annual report on Form 10-K, quarterly reports on Form 10-Q,
and current reports on Form 8-K, in each case filed with the SEC and
available on the SEC’s website at http://www.sec.gov.
FB Financial disclaims any obligation to update or revise any
forward-looking statements contained in this press release, which speak
only as of the date hereof, whether as a result of new information,
future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005860/en/
MEDIA CONTACT:
Jeanie M. Rittenberry
615-313-8328
jrittenberry@firstbankonline.com
www.firstbankonline.com
FINANCIAL CONTACT:
James R. Gordon
615-564-1212
jgordon@firstbankonline.com
investorrelations@firstbankonline.com
Source: FB Financial Corporation